Last updated on December 5th, 2023 at 09:19 am
A CR analyst finds job roles in the credit, lending and risk management divisions of commercial banks, companies offering credit cards, and NBFA or other financial institutions. Their main role is to assess and manage credit risks on an ongoing basis while evaluating applications for credit and loans in terms of compliance, credit-worthiness and regulatory norms. As a CR analyst, you may be client-facing or may need to educate other banking staff members who are client-facing with the credit-reports, insights and data to enable decision making on the offering of loans or credit lines.
The practice of credit risk management and its regulation was in the limelight recently when the global financial crisis caused a major credit crunch. The regulators felt transparency was lacking in the norms followed by banking credit risk analyst and risk evaluators and sought to ascertain that the associated risk of lending to customers would need thorough customer knowledge and credit risk evaluation. Changes and introduction of new Basel-III regulations would be burdensome felt the banks.
Though many banks have complied in meeting the stringent mandated regulatory requirements by overhauling their credit risk approach, training staff through credit risk analyst course and absorbing the higher costs incurred in terms of capital costs incurred treating credit risk as a mere compliance measure is being blinded. Better risk management does provide banks with the chance to get competitive and improve their performance indices.
The CR analyst uses data like payment history, credit reports, financial analysis of statements and job or work history while evaluating and making presentations on credit applications. Most times the bank always incorporates the CR analyst reports as a mandatory document for judging and deciding on credit-worthiness. Ongoing monitoring of customers and ensuring compliance to regulatory norms are also a part of the duties-list.
Become Credit Risk Analyst - Career progression
Most analysts begin as interns and at the junior levels immediately after gaining a graduation degree. Banks are open to a variety of subject majors in graduation. However, there need to be specific finance, banking practice, business administration and such modules in their academics to rise to the next level as an Associate.
Such positions as CR Analyst demand exhaustive and comprehensive knowledge and techniques of credit risk and management evaluation that is normally learnt on-the-job. However, doing a credit risk analyst course at Imarticus Learning will provide you with the opportunity to get certified and use the practical experience gained during the course. Many Imarticus Learning CR analyst aspirants are directly offered the Associate position at the start of their careers
It will require several years of performing well and to become a senior credit risk analyst and head of the team. From there on you could progress to the VP level, the Director level and even the CFO or MD levels depending on your performance and achievements.
Required Qualifications:
As per the 2015 BLS reports in USA 27% of the CR Analysts had a degree and employers preferred majors in economics, finance, business administration and accounting for the CR Analyst posts.
Other skills and qualifications:
CR analysts do not require professional licenses to practice. However professional certification like CRC-credit risk management certification from the Risk Management Association is not only a feather in your cap but places you at an advantage for better salaries and career progression. The certifying exam covers the seven core areas of credit risk management and the practical objective application of the knowledge to your working scenarios.
Job Scope and payouts:
The BLS report of 2015 in the USA claims CR analyst’s jobs will see a rise of 8 per cent in the decade starting 2016. The average salaries were in the range of 69,930 $ in the year 2016. In India, banking jobs are very prestigious and sought after as a CR Analyst job is secure, well-paid and comes with fixed hours of work.
Conclusion:
The credit risk analyst role is both financially and career-wise a rewarding prospect. Essential to the whole equation is knowledge and training at the interview, placement and on-the-job stages. Do your course at the reputed Imarticus Learning to take advantage of certification, assured placements and gain a firm footing in the credit risk field and banking industry. Hurry and enrol!
Also Read: Career Path & Qualification of Credit Risk Analyst
